June 2024 Report on Jobs reflects a mixed yet cautiously optimistic outlook for the UK labour market. Despite the economic uncertainties leading up to the recent general election, the market showed signs of potential stabilisation and growth, particularly in temporary job placements.
Let’s take a look at the headline data.
Decline in permanent jobs, rise in temporary roles
The report reveals a continued decline in permanent staff placements, marking the 21st consecutive month of decrease. However, the rate of decline has somewhat eased, indicating a possible nearing of a bottom. In contrast, temporary numbers have seen a slight rise, marking the first increase since October 2023. This growth is particularly notable in the Midlands and the North of England, suggesting regional variations in economic recovery and job market dynamics.
Salaries continue to grow amidst staff shortages
Despite the drop in people being placed in permanent jobs, permanent salary growth has accelerated to its fastest rate in eight months. This is driven by the ongoing cost-of-living pressures and a competitive market where employers are willing to increase pay to attract and retain talent, especially where skills are in short supply. Temporary wages also continue to rise, although at a slower pace compared to previous months. The demand for competitive compensation is a clear indicator of the tight labour market conditions.
Candidate availability continues upwards
One of the most significant findings from the report is the continuous increase in staff availability, which has now been rising for 16 months. This is attributed to higher redundancies, company restructuring, and slower decision-making among employers. The availability of both permanent and temporary staff has grown significantly, providing employers with a larger pool of candidates than has been the case for quite some time. However, this also underscores the need for businesses to act swiftly to secure top talent, particularly in sectors facing skill shortages.
Continued variation across sectors and regions
The report, and its accompanying regional reports, highlights notable disparities across different regions and sectors. The North of England and the Midlands are showing stronger recruitment activity compared to London and the South. Sector-wise, there is strong demand in engineering and blue-collar jobs, whereas IT and Computing, along with secretarial and clerical roles, have seen a decline in vacancies. These variances emphasise the need to understand the unique variations in your region and sector.
The REC’s Labour Market Tracker is a useful tool highlighting regional and sector variations.
Looking forwards, post-election
Economic and political factors continue to influence recruitment trends, and the most recent data is a stark reflection of this. The run up to the recent general election represented a period of uncertainty, causing some employers to delay permanent hiring decisions. However, the newly elected government’s focus on economic growth and stability is expected to boost business confidence and re-ignite hiring plans. Potential interest rate cuts and easing inflationary pressures are also seen as positive signs for the job market in the coming months. Generally speaking, the time following an election with a clear majority marks an uptick in business confidence, which positively impacts recruitment.
Commenting on Labour’s win, Neil Carberry, REC Chief Executive, said:
With a decisive mandate in hand, this new government has goodwill from businesses and support for its core goal – getting growth and prosperity flowing across the UK. Only business can deliver this – so a strong partnership is necessary.
What now for your business and hiring decisions?
As the jobs market evolves, stay adaptable and informed. Leveraging sector-specific and regional data can help in making strategic hiring decisions. Be proactive in your talent plans and focus on your unique needs, with an eye on the wider trends.
Our Commercial and manufacturing Manufacturing divisions (F1rst Commercial Recruitment and First Executive Recruitment) remain committed to supporting your company’s recruitment and growth ambitions.
We’re here to help your business thrive through quickly sourcing, interviewing and delivering strong candidates into your business. Get in touch with me or one of the team today for a no-obligation conversation to establish if we can help you hire the right staff for your business.
O: 0161-359-3111
M: 07775-700-707
E: sharon@firstgroupsolutions.co.uk
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Recruitment Outlook Report – June 2024